Frontier and Spirit Merging to Form Fifth-Largest Airline In U.S.

(CBS News) -- Frontier is buying Spirit Airlines in a $2.9 billion cash-and-stock deal that will create the nation's fifth-largest carrier.

The companies said Monday that the transaction will provide more low-cost fares for more travelers to destinations in the U.S., Latin America, and the Caribbean. Frontier Group Holdings and Spirit Airlines also anticipate $1 billion in annual consumer savings and are looking to expand their services with more than 350 aircraft on order.

In addition, Frontier and Spirit are looking to add more jobs. The companies foresee adding 10,000 direct jobs and thousands of additional jobs at their business partners by 2026.

The tie-up is valued at $6.6 billion when accounting for the assumption of debt and other liabilities.

"This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public," Spirit CEO Ted Christie said in a statement.

Click here for more from CBS News.